Xilong Science: 32.5 million yuan in bank accounts frozen due to performance compensation dispute

Xilong Science announced that the company's basic deposit account with China Construction Bank's Shantou branch, amounting to 32.5 million yuan, has been frozen due to a dispute regarding performance commitment compensation related to the transfer of shares in its subsidiary, as requested by the assignee for property preservation. From 2022 to 2024, if the target company fails to meet its performance commitments, the company must compensate 115 million yuan, and after deducting the consideration for the third phase of the share transfer, it should compensate 64.6344 million yuan. Previously, all parties reached an agreement on the share price compensation, but the plan was not implemented due to the assignee's refusal to accept the valuation. Currently, both parties are negotiating to first compensate based on the share price, with any shortfall made up in cash. This matter will not have any subsequent adverse impact on the company's performance and will not result in significant operational effects.